RESP Withdrawals in Canada: Contributions, EAPs and Tax Slips

Start with the two kinds of money in the account

When people say they are “taking money out of the RESP,” they may mean two different things. Your own contributions can be returned to the subscriber or paid to the beneficiary, subject to the plan. A return of those contributions is tax-free because those dollars were contributed after tax. It does not produce a T4A slip and is not reported as income.

An EAP draws on government benefits such as the Canada Education Savings Grant (CESG), the Canada Learning Bond (CLB), eligible provincial incentives, and the earnings in the RESP. It is paid to or for an eligible student to support post-secondary education. The provider reports it in box 042 of the student’s T4A. The student includes it as income on the return for the year received. Those distinctions are set out in the CRA’s RESP payment guide.

Confirm the program before requesting an EAP

An EAP is not available simply because the child has reached a certain age. The student must be enrolled in a qualifying post-secondary program, or be at least 16 and enrolled in a specified educational program. These are CRA terms with minimum program length and study-hour requirements. Some eligible programs are offered outside Canada, but their minimum-length rules differ from those in Canada.

The RESP provider checks whether the school and program qualify. The student supplies official proof of enrolment, and the provider may ask about the intended education expenses. If the course or school is unusual, ask the provider to confirm eligibility before planning around an EAP. CRA also allows an EAP in a limited six-month period after enrolment ends when the payment would have qualified immediately before it ended; ask the provider to check the dates and conditions.

The first 13 weeks: $8,000 and $4,000 are EAP limits

For a student in a qualifying educational program—often described as full-time—the maximum EAP during the first 13 consecutive weeks of enrolment is $8,000. Once that period is completed, there is no fixed EAP amount limit while the student remains eligible, but payments still have to be for reasonable education expenses under the plan and CRA rules. If the student later has a 12-month period without 13 consecutive weeks in a qualifying program, the $8,000 first-period maximum can apply again.

For a specified educational program—often described as part-time—the EAP limit is $4,000 for the 13-week period ending at the time of payment. These limits have applied since March 28, 2023. CRA notes that some providers may have needed to amend older plan terms before applying the increased limits. Ask your provider which terms govern your account. A provider can also pay a portion of contributions to the student tax-free, subject to the plan, alongside an EAP.

Do not mistake the annual review threshold for a cap

CRA’s RESP bulletin gives a 2026 annual EAP threshold of $29,459. This is a guideline for when the provider should examine the reasonableness of requested education expenses more closely. It is not an extra legal maximum on what a student may receive in a year. The provider can request receipts and other records at any amount, and CRA can audit an EAP regardless of size.

Tuition, course materials, rent while away at school, and transport connected to studies can be reasonable expenses. An item is not automatically allowed simply because it appears in a general list: the amount and connection to the student’s education matter. Keep enrolment records and receipts so you can answer a later question about the payment.

Ask for a clear payment breakdown

1. Ask the student for official proof of enrolment showing the school, program, dates, and study load.
2. Contact the RESP provider and ask whether the program qualifies for an EAP. Tell it what amount is needed and when.
3. Ask the provider to show separately how much will be an EAP and how much will be a return of contributions. Confirm the recipient, the tax slip, any plan fees, and whether receipts are required.
4. Keep the provider’s response, proof of enrolment, and expense records. When the student receives the T4A, compare box 042 with the EAP record.

For example, suppose an eligible student needs $9,000 during the first 13 weeks of a qualifying full-time program. The $8,000 first-period EAP limit does not necessarily mean that only $8,000 can leave the account. If there are available contributions and the plan permits it, the provider may be able to pay some contributions tax-free alongside an EAP. Ask it for the split; this example does not establish what any particular plan will pay.

What if you withdraw contributions before school starts?

A contribution refund may be tax-free, but “tax-free” does not mean it has no effect on grants. CRA says a subscriber can withdraw contributions without repaying the CESG portion when at least one beneficiary is eligible for an EAP. If that condition is not met, a contribution withdrawal can require CESG repayment. Check the plan’s rules and ask the provider to explain the grant effect before moving money out.

If the student does not pursue eligible studies, earnings may eventually be handled as an accumulated income payment under a different set of conditions and taxes. That is not an EAP and should not be mixed into the student’s T4A amount. Ask the provider for a separate explanation if this is your situation.